Company Information Board of Directors and Committees This section lists the executive directors, non-executive directors, independent non-executive directors, and the composition of the audit, remuneration, and nomination committees of Xinyuan Property Management Group Co., Ltd. - Executive Directors include Mr. Shen Yuanqing (Chairman of the Board), Mr. Feng Bo, and Mr. Wang Yong (Chief Financial Officer)3 - Independent Non-Executive Directors include Mr. Li Yifan, Mr. Ling Chenkai, Mr. Lan Ye, and Ms. Zhao Xia3 - Ms. Zhao Xia was appointed as a member of the Nomination Committee on June 30, 20253 Company Contact and Service Institutions This section details the company's registered office, principal place of business, group headquarters, share registrar, legal counsel, principal bankers, auditors, overseas banks, stock code, and company website address. - The Cayman Islands registered office is located at P.O. Box 309, Ugland House, Grand Cayman, KY1-1104, Cayman Islands4 - The principal place of business in Hong Kong is located at Unit B, 17th Floor, United Centre, 95 Queensway, Admiralty, Hong Kong4 - The Company's stock code is 1895, and its website address is **www.xypm.hk**[5](index=5&type=chunk) Management Discussion and Analysis Overall Performance For the six months ended June 30, 2025, the company achieved significant growth in both total revenue and net profit, demonstrating robust operational performance. 2025 H1 Financial Performance | Indicator | 2025 H1 (RMB millions) | 2024 H1 (RMB millions) | YoY Growth (%) | | :--- | :--- | :--- | :--- | | Total Revenue | 450.0 | 405.4 | 11.0 | | Net Profit | 60.9 | 52.7 | 15.6 | Business Review As a comprehensive property management service provider, the Group achieved steady growth in the first half of 2025 by focusing on three growth drivers: "scaling management services, building an ecosystem for value-added scenarios, and leveraging technology for value." - The Group is committed to becoming a leading provider of quality-of-life services driven by new productivity in the large property management sector9 - In the first half of 2025, the Group continued to focus on three growth curves: "scaling management services, building an ecosystem for value-added scenarios, and leveraging technology for value," achieving steady growth9 - As of June 30, 2025, property management services covered 71 cities in China, with 7.3 million sq.m. of new contracted area and 3.07 million sq.m. of new managed area in the first half of the year9 Overview The Group achieved steady performance growth in the first half of the year, enhancing management scale and quality through a "four-wheel drive" model, focusing on five core scenario services, and achieving digital collaborative development. - Management services deepened the "local intensive cultivation, strategic cooperation, regional specialized expansion, and market bidding" four-wheel drive model to ensure the quality of market expansion projects9 - Scenario services focused on five core businesses: leasing, home improvement, retail, purified water, and home services, promoting collaborative development through digital tools10 2025 H1 Scenario Services Revenue YoY Growth | Business Type | YoY Growth (%) | | :--- | :--- | | Home Improvement Services | 23 | | Leasing Services | 129 | | Purified Water Services | 17 | - Scenario technology, centered on "IoT platform + intelligent agent platform + data platform," pioneered the application of AI technology in property scenarios, launching "Customer Service Intelligent Agent" and "Butler Intelligent Agent"11 - The Group received multiple honors, including TOP 8 in Leju Finance's 2025 China Property Service Satisfaction Top 100 Enterprises and TOP 15 in China Index Academy's 2025 China Property Service Top 100 Enterprises12 Property Management Services The Group adheres to a quality-driven development strategy, signing contracts for 7.3 million square meters in the first half of the year, with an increased proportion of non-residential properties. - In the first half of 2025, the Group signed contracts for a total of 7.3 million sq.m., including 3.34 million sq.m. of residential and 3.96 million sq.m. of non-residential, with the proportion of non-residential properties further increasing14 Contracted and Managed Area and Project Count | Indicator | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Contracted GFA (thousand sq.m.) | 67,404 | 60,924 | | Number of Contracted Projects (units) | 390 | 342 | | Managed GFA (thousand sq.m.) | 40,179 | 35,718 | | Number of Managed Projects (units) | 271 | 240 | - As of June 30, 2025, the Group's property management services covered 71 cities nationwide, continuously expanding its national footprint16 GFA and Property Management Services Revenue by Geographical Region | Region | 2025 GFA (thousand sq.m.) | 2025 Revenue (thousand RMB) | 2025 Revenue Share (%) | 2024 GFA (thousand sq.m.) | 2024 Revenue (thousand RMB) | 2024 Revenue Share (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Central China | 21,164 | 159,947 | 50.7 | 20,759 | 153,441 | 55.1 | | East China | 9,287 | 69,870 | 22.2 | 6,516 | 62,234 | 22.3 | | West China | 5,303 | 39,457 | 12.5 | 7,117 | 40,648 | 14.6 | | North China | 1,603 | 18,462 | 5.9 | 776 | 11,908 | 4.3 | | South China | 2,822 | 27,559 | 8.7 | 550 | 10,379 | 3.7 | | Total | 40,179 | 315,295 | 100.0 | 35,718 | 278,610 | 100.0 | - As of June 30, 2025, 59% of the Group's managed GFA was from third parties, and 68% of contracted GFA was from third parties24 Managed Area and Property Management Services Revenue Share by Property Developer Type | Developer Type | 2025 Revenue (thousand RMB) | 2025 Revenue Share (%) | 2025 Managed GFA (thousand sq.m.) | 2025 Managed GFA Share (%) | 2024 Revenue (thousand RMB) | 2024 Revenue Share (%) | 2024 Managed GFA (thousand sq.m.) | 2024 Managed GFA Share (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Xinyuan Real Estate Group | 188,863 | 59.9 | 16,496 | 41.1 | 188,446 | 67.6 | 16,175 | 45.3 | | Independent Third Parties | 126,432 | 40.1 | 23,683 | 58.9 | 90,164 | 32.4 | 19,543 | 54.7 | | Total | 315,295 | 100.0 | 40,179 | 100.0 | 278,610 | 100.0 | 35,718 | 100.0 | Property Management Services Revenue and Managed Area by Property Type | Property Type | 2025 Revenue (thousand RMB) | 2025 Revenue Share (%) | 2025 Managed GFA (thousand sq.m.) | 2025 Managed GFA Share (%) | 2024 Revenue (thousand RMB) | 2024 Revenue Share (%) | 2024 Managed GFA (thousand sq.m.) | 2024 Managed GFA Share (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Residential Properties | 237,795 | 75.4 | 28,326 | 70.5 | 223,144 | 80.1 | 25,562 | 71.6 | | Non-Residential Properties | 77,500 | 24.6 | 11,853 | 29.5 | 55,466 | 19.9 | 10,156 | 28.4 | | Total | 315,295 | 100.0 | 40,179 | 100.0 | 278,610 | 100.0 | 35,718 | 100.0 | Value-Added Services In the first half of 2025, the Group's community value-added services revenue reached RMB 102.7 million, a year-on-year increase of 23.6%, with significant growth in leasing, home improvement, and purified water businesses. - For the six months ended June 30, 2025, community value-added revenue reached RMB 102.7 million, a year-on-year increase of 23.6%30 - Leasing services revenue increased by 129% year-on-year, home improvement business revenue increased by 23% year-on-year, and purified water business revenue increased by 17% year-on-year3031 - Retail business innovated the "procurement + operation + delivery" iron triangle model, expanding community private domain groups31 Community Value-Added Services Revenue Breakdown | Value-Added Business | 2025 (thousand RMB) | 2025 Share (%) | 2024 (thousand RMB) | 2024 Share (%) | | :--- | :--- | :--- | :--- | :--- | | Third-Party Services Revenue | 14,108 | 13.8 | 10,659 | 12.8 | | Space Resource Management | 53,207 | 51.8 | 42,834 | 51.6 | | Home Life Services | 35,345 | 34.4 | 29,558 | 35.6 | | Total | 102,660 | 100.0 | 83,051 | 100.0 | Pre-delivery and Consulting Services The Group's pre-delivery and consulting services revenue continued to decline, primarily due to strengthened risk control over business partners. - Pre-delivery and consulting services revenue continued to decline, mainly due to strengthened risk control over partners35 Pre-delivery and Consulting Services Revenue Breakdown | Service Source | 2025 (thousand RMB) | 2025 Share (%) | 2024 (thousand RMB) | 2024 Share (%) | | :--- | :--- | :--- | :--- | :--- | | Xinyuan Real Estate Group | 918 | 31.6 | 3,969 | 56.8 | | Third-Party Property Developers | 1,991 | 68.4 | 3,022 | 43.2 | | Total | 2,909 | 100.0 | 6,991 | 100.0 | Property Engineering Services Property engineering services include fire protection, intelligent construction, landscaping, and smart community planning, with the Group also participating in government-led urban renewal projects. - Property engineering services cover fire protection, intelligent construction, landscaping and landscape construction, smart community planning and construction, among others37 - The Group participates in government-led urban renewal projects and renovation projects for old communities37 Property Engineering Services Revenue Breakdown | Service Source | 2025 (thousand RMB) | 2025 Share (%) | 2024 (thousand RMB) | 2024 Share (%) | | :--- | :--- | :--- | :--- | :--- | | Xinyuan Real Estate Group | 14,353 | 49.2 | 24,844 | 67.6 | | Third-Party Property Developers | 14,799 | 50.8 | 11,913 | 32.4 | | Total | 29,152 | 100.0 | 36,757 | 100.0 | Outlook The Group is committed to becoming a leading provider of quality-of-life services driven by new productivity in the large property management sector, and will continue to focus on this area, leveraging data-driven operations and deep integration of technology and business. - The Group is committed to becoming a leading provider of quality-of-life services driven by new productivity in the large property management sector40 - Future focus will remain on the large property management sector, with data-driven operations and deep integration of technology and business40 - The company will continuously upgrade its three development curves: management services, scenario value-added services, and technology empowerment, to achieve sustained growth in operational efficiency and business scale40 I. Management Services Management services will focus on high-quality development, solidifying service quality and continuously expanding scale from residential properties to non-residential, public buildings, and extending to commercial management and asset services. - Management services will focus on high-quality development, continuously extending from residential properties to non-residential, public buildings, and expanding into commercial management and asset services41 - Scale expansion will center on market-oriented growth, innovating diverse cooperation models, extending from incremental to existing, and from residential to non-residential, urban, and specialized services41 - Basic service capabilities will be enhanced through data-driven management efficiency improvements, strengthening refined and differentiated management and service capabilities, and improving operational efficiency and customer living experience41 II. Scenario Services Diversified business operations will deepen the "technology empowerment + scenario extension + model replication" strategy, utilizing intelligent agents to analyze user behavior and AI to generate marketing materials, thereby improving business quality and efficiency. - Diversified business operations will deepen the "technology empowerment + scenario extension + model replication" strategy around five core businesses42 - Increased integration of technology will use intelligent agents to analyze user behavior for precise lead generation and AI to generate marketing materials to enhance promotional efficiency42 - Promotion of deep integration between leasing, home improvement, and the Xinyi Family and Xinduo Duo platforms will build a "service + commerce" smart community ecosystem, supporting dual growth in diversified business revenue and profit42 III. Scenario Technology Technology business will focus on building new productivity for large property management, with a core positioning of "technology empowerment for large property enterprises and diversified business support for small and medium property enterprises," continuously improving and optimizing the intelligent agent platform. - Technology business focuses on building new productivity for large property management, with a core positioning of "technology empowerment for large property enterprises and diversified business support for small and medium property enterprises"43 - Continuous improvement and optimization of the intelligent agent platform will create an intelligent agent development base suitable for the property industry, promoting deep integration of technology and business43 - Building a digital intelligence-driven smart operation and management system will create a smart property technology ecosystem with independent core capabilities, comprehensively enhancing enterprise management, operation, and service capabilities43 Financial Review The Group demonstrated robust financial performance in the first half of 2025, with total revenue increasing by 11.0% year-on-year to RMB 450.0 million and net profit growing by 15.6% to RMB 60.9 million. 2025 H1 Key Financial Indicators | Indicator | 2025 H1 (thousand RMB) | 2024 H1 (thousand RMB) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 450,016 | 405,409 | 11.0 | | Gross Profit | 155,443 | 132,227 | 17.5 | | Gross Profit Margin | 34.5% | 32.6% | +1.9pp | | Net Profit | 60,927 | 52,661 | 15.6 | | Profit Attributable to Equity Holders of the Company | 59,411 | 50,850 | 16.7 | | Basic Earnings Per Share (RMB cents) | 10.29 | 8.96 | 14.8 | | Current Assets | 990,871 | 1,039,832 (Dec 31, 2024) | -4.7 | | Total Equity | 634,843 | 588,680 (Dec 31, 2024) | 7.8 | Revenue For the six months ended June 30, 2025, the Group's total revenue was approximately RMB 450.0 million, a year-on-year increase of 11.0%. Property management services remained the primary revenue source, accounting for 70.1% of total revenue. Revenue by Business Line | Business Line | 2025 Revenue (thousand RMB) | 2025 Share (%) | 2024 Revenue (thousand RMB) | 2024 Share (%) | | :--- | :--- | :--- | :--- | :--- | | Property Management Services | 315,295 | 70.1 | 278,610 | 68.7 | | Value-Added Services | 102,660 | 22.8 | 83,051 | 20.5 | | Pre-delivery and Consulting Services | 2,909 | 0.6 | 6,991 | 1.7 | | Property Engineering Services | 29,152 | 6.5 | 36,757 | 9.1 | | Total | 450,016 | 100.0 | 405,409 | 100.0 | Gross Profit and Gross Profit Margin The Group's gross profit increased by 17.5% year-on-year to RMB 155.4 million, with the gross profit margin rising from 32.6% in 2024 to 34.5%. Gross Profit and Gross Profit Margin by Business Line | Business Line | 2025 Gross Profit (thousand RMB) | 2025 Gross Profit Margin (%) | 2024 Gross Profit (thousand RMB) | 2024 Gross Profit Margin (%) | | :--- | :--- | :--- | :--- | :--- | | Property Management Services | 102,542 | 32.5 | 84,211 | 30.2 | | Value-Added Services | 49,239 | 48.0 | 39,417 | 47.5 | | Pre-delivery and Consulting Services | 482 | 16.6 | 2,514 | 36.0 | | Property Engineering Services | 3,180 | 10.9 | 6,085 | 16.6 | | Total | 155,443 | 34.5 | 132,227 | 32.6 | - Property management services gross profit margin increased by 2.3 percentage points to 32.5%, mainly due to improved economies of scale, better cost-saving measures, and enhanced operational efficiency47 - Pre-delivery and consulting services gross profit margin decreased by 19.4 percentage points to 16.6%, primarily due to a reduction in asset co-sales business, such as parking spaces47 Administrative Expenses For the six months ended June 30, 2025, administrative expenses were RMB 42.0 million, an increase of 19.7% year-on-year, accounting for 9.3% of revenue. Administrative Expenses | Indicator | 2025 H1 (RMB millions) | 2024 H1 (RMB millions) | YoY Change (%) | Share of Revenue (2025) | Share of Revenue (2024) | | :--- | :--- | :--- | :--- | :--- | :--- | | Administrative Expenses | 42.0 | 35.1 | 19.7 | 9.3% | 8.7% | Other Income, Gains and Losses, Net For the six months ended June 30, 2025, other income was a net negative RMB 1.0 million, a significant decrease of 103.0% from RMB 32.8 million in the prior period. Other Income, Gains and Losses, Net | Indicator | 2025 H1 (RMB millions) | 2024 H1 (RMB millions) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Other Income, Gains and Losses, Net | -1.0 | 32.8 | -103.0 | - The decrease was primarily attributable to lower interest income in the current period49 Income Tax Expense For the six months ended June 30, 2025, income tax expense was RMB 14.0 million, a decrease of RMB 7.5 million from RMB 21.5 million in the prior period. Income Tax Expense | Indicator | 2025 H1 (RMB millions) | 2024 H1 (RMB millions) | YoY Change (RMB millions) | | :--- | :--- | :--- | :--- | | Income Tax Expense | 14.0 | 21.5 | -7.5 | - The decrease was primarily attributable to a reduction in deferred tax liabilities recognized and a decrease in non-deductible expenses in the current period50 Profit For the six months ended June 30, 2025, the Group's net profit for the period was RMB 60.9 million, a year-on-year increase of 15.6%, mainly due to business growth driven by increased GFA under management. Net Profit and Earnings Per Share | Indicator | 2025 H1 (RMB millions) | 2024 H1 (RMB millions) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Net Profit for the Period | 60.9 | 52.7 | 15.6 | | Profit Attributable to Equity Holders of the Company | 59.4 | 50.9 | 16.7 | | Basic Earnings Per Share (RMB cents) | 10.29 | 8.96 | 14.8 | - The increase in net profit was primarily due to business growth driven by the Group's increased GFA under management51 Current Assets, Reserves and Capital Structure As of June 30, 2025, the Group's current assets were RMB 990.9 million, a 4.7% decrease from December 31, 2024. Total equity was RMB 634.8 million, a 7.8% increase from December 31, 2024. Current Assets and Total Equity | Indicator | June 30, 2025 (RMB millions) | Dec 31, 2024 (RMB millions) | Change (%) | | :--- | :--- | :--- | :--- | | Current Assets | 990.9 | 1,039.8 | -4.7 | | Total Equity | 634.8 | 588.7 | 7.8 | - The increase in total equity was primarily due to profit for the period offset by dividends paid54 Property, Plant and Equipment As of June 30, 2025, the Group's net property, plant and equipment was RMB 13.0 million, a 2.3% decrease from December 31, 2024. Net Property, Plant and Equipment | Indicator | June 30, 2025 (RMB millions) | Dec 31, 2024 (RMB millions) | Change (%) | | :--- | :--- | :--- | :--- | | Net Property, Plant and Equipment | 13.0 | 13.3 | -2.3 | - The decrease was primarily due to increased purchases of office equipment and machinery for business development, partially offset by depreciation for the period55 Intangible Assets As of June 30, 2025, the carrying value of the Group's other intangible assets was RMB 36.3 million, a 6.7% decrease from December 31, 2024. Carrying Value of Intangible Assets | Indicator | June 30, 2025 (RMB millions) | Dec 31, 2024 (RMB millions) | Change (%) | | :--- | :--- | :--- | :--- | | Carrying Value of Intangible Assets | 36.3 | 38.9 | -6.7 | - Key intangible assets include the Xinyuan Property unified management platform system, call center system, electronic invoice tax control server invoicing system, FanRuan reporting software, expense management system, and property operating rights56 Trade Receivables As of June 30, 2025, trade receivables reached RMB 361.8 million, an 11.4% increase from December 31, 2024, primarily due to business growth driven by increased GFA under management. Trade Receivables | Indicator | June 30, 2025 (RMB millions) | Dec 31, 2024 (RMB millions) | Change (%) | | :--- | :--- | :--- | :--- | | Trade Receivables | 361.8 | 324.8 | 11.4 | - The increase was primarily due to business growth driven by the Group's increased GFA under management57 Prepayments and Other Receivables As of June 30, 2025, prepayments and other receivables were approximately RMB 384.9 million, a decrease of approximately RMB 11.4 million from December 31, 2024. Prepayments and Other Receivables | Indicator | June 30, 2025 (RMB millions) | Dec 31, 2024 (RMB millions) | Change (RMB millions) | | :--- | :--- | :--- | :--- | | Prepayments and Other Receivables | 384.9 | 396.3 | -11.4 | - The decrease was primarily due to a reduction in amounts due from and prepaid to related parties58 Trade Payables As of June 30, 2025, trade payables reached RMB 121.6 million, a 16.1% decrease from December 31, 2024. Trade Payables | Indicator | June 30, 2025 (RMB millions) | Dec 31, 2024 (RMB millions) | Change (%) | | :--- | :--- | :--- | :--- | | Trade Payables | 121.6 | 145.0 | -16.1 | - The decrease was primarily due to a reduction in goods payments temporarily unpaid during the period59 Other Payables and Accrued Expenses As of June 30, 2025, other payables and accrued expenses were approximately RMB 232.9 million, a decrease of approximately 11.8% from December 31, 2024. Other Payables and Accrued Expenses | Indicator | June 30, 2025 (RMB millions) | Dec 31, 2024 (RMB millions) | Change (%) | | :--- | :--- | :--- | :--- | | Other Payables and Accrued Expenses | 232.9 | 264.2 | -11.8 | - The decrease was primarily due to a reduction in non-trade amounts payable to related parties and normal refunds of deposits and temporary receipts from property owners60 Contract Liabilities As of June 30, 2025, contract liabilities were approximately RMB 131.8 million, an 8.8% decrease from December 31, 2024. Contract Liabilities | Indicator | June 30, 2025 (RMB millions) | Dec 31, 2024 (RMB millions) | Change (%) | | :--- | :--- | :--- | :--- | | Contract Liabilities | 131.8 | 144.5 | -8.8 | - The decrease was primarily due to the Group's focus on enhancing owner service quality, leading to a slowdown in property fee prepayment activities61 Borrowings and Gearing Ratio As of June 30, 2025, the Group had no borrowings or bank loans, resulting in a zero gearing ratio, indicating a robust financial position. - As of June 30, 2025, the Group had no borrowings or bank loans62 - As of June 30, 2025, the gearing ratio was zero63 Pledge of Assets, Major Acquisitions, Disposals and Investments For the six months ended June 30, 2025, the Group had no assets pledged, nor any major acquisitions, disposals, or investments concerning subsidiaries, associates, or joint ventures. - As of June 30, 2025, no assets of the Group were pledged64 - For the six months ended June 30, 2025, the Group had no major acquisitions concerning subsidiaries, associates, or joint ventures65 - For the six months ended June 30, 2025, the Group had no major disposals or investments concerning subsidiaries, associates, or joint ventures6768 Contingent Liabilities and Foreign Exchange Risk As of June 30, 2025, the Group had no significant contingent liabilities. As its principal operations are conducted in China and most income and expenses are denominated in RMB, the Group's foreign exchange risk is not significant. - As of June 30, 2025, the Group had no significant contingent liabilities69 - The Group's principal operations are conducted in China, with most income and expenses denominated in RMB, thus foreign exchange risk is not significant70 - The Group currently has not entered into any forward contracts to hedge its foreign exchange risk70 Employment and Remuneration Policies As of June 30, 2025, the Group employed 2,139 staff, a slight increase from the prior period. The company adopts remuneration policies similar to its peers, determining compensation based on responsibilities and market levels. Employee Count | Indicator | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Employee Count | 2,139 | 2,104 | - Remuneration policies are similar to industry peers, determined by reference to responsibilities and current market levels in the region71 - Discretionary performance bonuses are paid to employees, and the Group participates in various social welfare schemes for employees71 Use of Proceeds from Listing The net proceeds from the Company's listing were approximately RMB 197.2 million. As of June 23, 2022, approximately RMB 79.3 million had been utilized, with RMB 117.9 million remaining unutilized. - Net proceeds from the listing were approximately RMB 197.2 million72 Use of Net Proceeds from Listing and Utilization (as of June 23, 2022) | Purpose | Intended Use (RMB millions) | Actual Use as of Dec 31, 2021 (RMB millions) | Actual Use as of June 23, 2022 (RMB millions) | Unutilized as of June 23, 2022 (RMB millions) | | :--- | :--- | :--- | :--- | :--- | | Expand property management services, seek strategic acquisition and investment opportunities | 118.3 | 22.2 | 0.8 | 95.3 | | Expand types of services offered by value-added services business line | 29.6 | 22.8 | 2.0 | 4.8 | | Upgrade and develop proprietary information technology and smart systems | 29.6 | 6.6 | 5.2 | 17.8 | | Working capital needs and other general corporate purposes | 19.7 | 19.7 | – | – | | Total | 197.2 | 71.3 | 8.0 | 117.9 | Use of Proceeds from 2020 Placing The net proceeds from the 2020 placing were approximately RMB 115.0 million. As of June 23, 2022, approximately RMB 11.5 million had been utilized, with RMB 103.5 million remaining unutilized. - Net proceeds from the 2020 placing were approximately RMB 115.0 million76 Use of Net Proceeds from 2020 Placing and Utilization (as of June 23, 2022) | Purpose | Intended Use (RMB millions) | Actual Use as of Dec 31, 2021 (RMB millions) | Actual Use as of June 23, 2022 (RMB millions) | Unutilized as of June 23, 2022 (RMB millions) | | :--- | :--- | :--- | :--- | :--- | | Business development (diversified services and smart system upgrades) | 69.0 | – | – | 69.0 | | Strategic investments related to the Group's principal business | 34.5 | – | – | 34.5 | | General working capital | 11.5 | 11.5 | – | – | | Total | 115.0 | 11.5 | – | 103.5 | Use of Proceeds from Subscription The net proceeds from the subscription were approximately HKD 31.2 million (approximately RMB 28.5 million). As of June 23, 2022, approximately RMB 7.8 million had been utilized, with RMB 23.4 million remaining unutilized. - Net proceeds from the subscription were approximately HKD 31.2 million79 Use of Net Proceeds from Subscription and Utilization (as of June 23, 2022) | Purpose | Intended Use (RMB millions) | Actual Use as of Dec 31, 2021 (RMB millions) | Actual Use as of June 23, 2022 (RMB millions) | Unutilized as of June 23, 2022 (RMB millions) | | :--- | :--- | :--- | :--- | :--- | | Approx. 75% for strategic investments related to property management services | 23.4 | – | – | 23.4 | | Approx. 25% for the Group's general working capital | 7.8 | 7.8 | – | – | | Total | 31.2 | 7.8 | – | 23.4 | Change in Use of Proceeds The Board has resolved to change the use of the unutilized aggregate proceeds from the listing, 2020 placing, and subscription (approximately RMB 244.8 million). As of June 30, 2025, approximately RMB 156.0 million had been utilized. - The Board has resolved to change the use of the unutilized aggregate proceeds from the listing, 2020 placing, and subscription (approximately RMB 244.8 million)80 - As of June 30, 2025, approximately RMB 156.0 million of the unutilized aggregate proceeds had been utilized80 - The expected utilization time for the unutilized portion of the aggregate proceeds has been extended from September 30, 2025, to September 30, 202683 Revised Use of Unutilized Aggregate Proceeds and Utilization (as of June 30, 2025) | Revised Purpose | Allocation Percentage (%) | Allocated as of June 23, 2022 (RMB millions) | Allocated as of Jan 1, 2024 (RMB millions) | Actual Use in 2024 (RMB millions) | Unutilized as of Dec 31, 2024 (RMB millions) | Actual Use in 2025 (RMB millions) | Unutilized as of June 30, 2025 (RMB millions) | Expected Utilization Timeline | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Seize strategic investment opportunities, prioritize M&A, expand business scale | 30 | 73.4 | 73.4 | 3.0 | 70.4 | 1.9 | 68.5 | Sep 30, 2026 | | Further develop value-added services | 20 | 49.0 | 41.5 | 26.7 | 14.8 | 10.9 | 3.9 | Sep 30, 2026 | | Upgrade digital and smart management systems | 30 | 73.4 | 54.6 | 29.4 | 25.2 | 8.8 | 16.4 | Sep 30, 2026 | | Working capital and general corporate purposes | 20 | 49.0 | – | – | – | – | – | – | | Total | 100.0 | 244.8 | 169.5 | 59.1 | 110.4 | 21.6 | 88.8 | | Other Information Directors' and Chief Executive's Interests As of June 30, 2025, Mr. Shen Yuanqing and Mr. Wang Yong, as directors and chief executives, held shares in the Company through controlled corporations and owner's interests. Directors' and Chief Executive's Interests in the Company | Name | Nature of Interest | Number of Shares or Related Shares | Approximate Percentage of Interest in the Company | | :--- | :--- | :--- | :--- | | Mr. Shen Yuanqing | Interest in controlled corporation | 61,488,000 | 10.37% | | Mr. Wang Yong | Interest in controlled corporation | 8,512,500 | 1.52% | | | Owner's interest | 488,000 | | - All interests are long positions, and the shareholding percentages are calculated based on 593,037,500 issued shares as of June 30, 202586 Directors' Rights to Acquire Shares or Debentures For the six months ended June 30, 2025, no rights were granted to any director or their spouse or children under 18 years of age to acquire benefits by purchasing shares or debentures of the Company, nor were any such rights exercised. - For the six months ended June 30, 2025, no rights to acquire shares or debentures were granted to or exercised by any director or their spouse or children under 18 years of age88 Substantial Shareholders' Interests As of June 30, 2025, Xinyuan Real Estate Co., Ltd. and Xinyuan Real Estate Holdings Co., Ltd. were substantial shareholders of the Company, each holding 43.07% of the shares. Substantial Shareholders' Interests in Shares and Related Shares | Name | Capacity/Nature of Interest | Number of Shares | Approximate Percentage of Shareholding | | :--- | :--- | :--- | :--- | | Xinyuan Real Estate Co., Ltd. | Beneficial owner | 255,402,000 | 43.07% | | Xinyuan Real Estate Holdings Co., Ltd. | Interest in controlled corporation | 255,402,000 | 43.07% | - Xinyuan Real Estate Co., Ltd. is wholly owned by Xinyuan Real Estate Holdings Co., Ltd.91 - Xinyuan Real Estate Holdings Co., Ltd.'s shares are listed on the New York Stock Exchange91 Purchase, Sale or Redemption of Listed Securities For the period from January 1, 2025, to June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's securities listed on the Stock Exchange, and the Company held no treasury shares. - For the period from January 1, 2025, to June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's securities listed on the Stock Exchange92 - As of June 30, 2025, the Company held no treasury shares92 Interim Dividend The Board recommends paying an interim dividend of 2.77 HK cents per share for the year ended June 30, 2025, to shareholders whose names appear on the register of members on September 15, 2025. - The Board recommends paying an interim dividend of 2.77 HK cents per share for the year ended June 30, 202593 - The proposed interim dividend will be paid on September 22, 2025, to shareholders whose names appear on the Company's register of members on September 15, 202593 Corporate Governance and Directors' Code of Conduct The Company is committed to high standards of corporate governance and has adopted the Corporate Governance Code set out in Appendix C1 of the HKEX Listing Rules. - The Company has adopted the Corporate Governance Code set out in Appendix C1 of the HKEX Listing Rules94 - The roles of Chairman and Chief Executive Officer are combined and held by Mr. Shen Yuanqing, which the Board believes facilitates business strategy execution, promotes operational efficiency, and enhances overall strategic planning efficiency94 - The Company has adopted a code of conduct for directors' securities transactions, and all directors confirm compliance97 Update on Directors' Information and Review of Financial Statements In accordance with Listing Rule 13.51B(1), Ms. Zhao Xia was appointed as a member of the Company's Nomination Committee effective June 30, 2025. The Audit Committee has reviewed the Group's unaudited interim results for the six months ended June 30, 2025, with management. - Ms. Zhao Xia was appointed as a member of the Company's Nomination Committee, effective June 30, 202598 - The Audit Committee has reviewed the Group's unaudited interim results for the six months ended June 30, 2025, together with management99 Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income Profit or Loss and Total Comprehensive Income For the six months ended June 30, 2025, the Group's revenue was RMB 450.0 million, and gross profit was RMB 155.4 million. Profit and total comprehensive income for the period was RMB 60.9 million, with profit attributable to equity holders of the Company at RMB 59.4 million, and basic earnings per share at RMB 10.29 cents. Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income Summary | Indicator | 2025 H1 (thousand RMB) | 2024 H1 (thousand RMB) | | :--- | :--- | :--- | | Revenue | 450,016 | 405,409 | | Cost of Sales | (294,573) | (273,182) | | Gross Profit | 155,443 | 132,227 | | Other Income, Gains and Losses, Net | (1,039) | 32,753 | | Administrative Expenses | (42,005) | (35,133) | | Selling and Marketing Expenses | (14,918) | (11,363) | | Research and Development Expenses | (8,698) | (7,746) | | Impairment Provisions for Financial Assets and Contract Assets (excluding related parties) | (31,555) | (65,373) | | Impairment Reversals for Financial Assets and Contract Assets (related parties) | 19,125 | 30,414 | | Profit Before Income Tax | 74,881 | 74,144 | | Income Tax Expense | (13,954) | (21,483) | | Profit and Total Comprehensive Income for the Period | 60,927 | 52,661 | | Profit Attributable to Equity Holders of the Company | 59,411 | 50,850 | | Non-controlling Interests | 1,516 | 1,811 | | Basic Earnings Per Share (RMB cents) | 10.29 | 8.96 | Interim Condensed Consolidated Statement of Financial Position Assets and Liabilities As of June 30, 2025, the Group's total non-current assets were RMB 258.9 million, and total current assets were RMB 990.9 million. Total current liabilities were RMB 588.0 million, and total non-current liabilities were RMB 26.9 million. Interim Condensed Consolidated Statement of Financial Position Summary | Indicator | June 30, 2025 (thousand RMB) | Dec 31, 2024 (thousand RMB) | | :--- | :--- | :--- | | Non-Current Assets | | | | Property, Plant and Equipment | 12,954 | 13,335 | | Right-of-Use Assets | 31,225 | 38,692 | | Intangible Assets | 36,270 | 38,929 | | Investment Properties | 70,052 | 49,574 | | Deferred Tax Assets | 53,129 | 45,273 | | Total Non-Current Assets | 258,863 | 240,884 | | Current Assets | | | | Inventories | 50,579 | 43,710 | | Trade and Bills Receivables | 361,790 | 324,826 | | Cash and Cash Equivalents | 192,338 | 264,018 | | Total Current Assets | 990,871 | 1,039,832 | | Current Liabilities | | | | Trade Payables | 121,578 | 144,963 | | Other Payables and Accrued Expenses | 232,880 | 264,179 | | Contract Liabilities | 131,766 | 144,489 | | Tax Payable | 88,276 | 84,450 | | Total Current Liabilities | 588,019 | 652,350 | | Non-Current Liabilities | | | | Lease Liabilities | 21,322 | 32,781 | | Deferred Tax Liabilities | 5,550 | 6,905 | | Total Non-Current Liabilities | 26,872 | 39,686 | | Net Assets | 634,843 | 588,680 | | Total Equity | 634,843 | 588,680 | Interim Condensed Consolidated Statement of Changes in Equity Changes in Equity For the six months ended June 30, 2025, total equity attributable to equity holders of the Company increased from approximately RMB 584.0 million as of January 1, 2025, to approximately RMB 628.6 million, primarily driven by profit and total comprehensive income of RMB 59.4 million for the period. Interim Condensed Consolidated Statement of Changes in Equity Summary | Indicator | As of Jan 1, 2024 (thousand RMB) | As of June 30, 2024 (thousand RMB) | As of Jan 1, 2025 (thousand RMB) | As of June 30, 2025 (thousand RMB) | | :--- | :--- | :--- | :--- | :--- | | Total Equity Attributable to Equity Holders of the Company | 538,632 | 569,511 | 583,987 | 628,634 | | Non-controlling Interests | 3,094 | 4,905 | 4,693 | 6,209 | | Total Equity | 541,726 | 574,416 | 588,680 | 634,843 | | Dividends Distributed | (19,971) | (19,971) | (14,764) | (14,764) | | Profit and Total Comprehensive Income for the Period | 50,850 | 50,850 | 59,411 | 59,411 | Interim Condensed Consolidated Statement of Cash Flows Cash Flow Analysis For the six months ended June 30, 2025, net cash used in operating activities was RMB 56.0 million, net cash used in investing activities was RMB 1.1 million, and net cash used in financing activities was RMB 13.4 million. Interim Condensed Consolidated Statement of Cash Flows Summary | Indicator | 2025 H1 (thousand RMB) | 2024 H1 (thousand RMB) | | :--- | :--- | :--- | | Net Cash Used in Operating Activities | (56,025) | (15,006) | | Net Cash (Used in)/Generated from Investing Activities | (1,054) | 14,646 | | Net Cash Used in Financing Activities | (13,421) | (24,036) | | Net Decrease in Cash and Cash Equivalents | (70,500) | (24,396) | | Cash and Cash Equivalents at Beginning of Period | 264,018 | 258,957 | | Cash and Cash Equivalents at End of Period | 192,338 | 234,383 | Notes to the Interim Condensed Consolidated Financial Information 1. Company and Group Information The Company was incorporated in the Cayman Islands on December 13, 2018, and its shares are listed on the Main Board of the Hong Kong Stock Exchange. The Company is an investment holding company, and its subsidiaries are primarily engaged in property management services, value-added services, pre-delivery and consulting services, and property engineering services. - The Company was incorporated in the Cayman Islands on December 13, 2018, and its shares are listed on the Main Board of the Hong Kong Stock Exchange110 - The Company's subsidiaries are primarily engaged in property management services, value-added services, pre-delivery and consulting services, and property engineering services112 - The Company's ultimate controlling company is Xinyuan Real Estate Holdings Co., Ltd., whose shares are listed on the New York Stock Exchange111 2.1 Basis of Preparation The interim condensed consolidated financial statements are prepared in accordance with the applicable disclosure requirements of the HKEX Listing Rules and International Accounting Standard 34, with accounting policies consistent with the 2024 annual consolidated financial statements, and the presentation currency is RMB. - The interim condensed consolidated financial statements are prepared in accordance with the applicable disclosure requirements of the HKEX Listing Rules and International Accounting Standard 34 Interim Financial Reporting113 - The accounting policies and methods of computation adopted are consistent with those applied in the preparation of the Group's annual consolidated financial statements for the year ended December 31, 2024115 - RMB is used as the presentation currency for the interim condensed consolidated financial information114 2.2 Changes in Accounting Policies and Disclosures During the period, new or amended standards such as IFRS 16 (amended), IAS 7 and IFRS 7 (amended), and IAS 1 (amended) were adopted for the first time, with no significant financial impact on the Group's interim condensed consolidated financial statements. - New or amended standards adopted for the first time during the period include IFRS 16 (amended) Lease Liability in a Sale and Leaseback, IAS 7 and IFRS 7 (amended) Supplier Finance Arrangements, and IAS 1 (amended) Classification of Liabilities as Current or Non-current and Non-current Liabilities with Covenants115 - The adoption of these new or amended IFRSs had no significant financial impact on the Group's interim condensed consolidated financial statements and/or disclosures contained therein115 2.3 International Financial Reporting Standards Issued But Not Yet Effective The Group has not adopted any other new or amended International Financial Reporting Standards that have been issued but are not yet effective for this interim period, and directors believe their adoption is unlikely to have a significant financial impact. - The Group has not adopted any other new or amended International Financial Reporting Standards that have been issued but are not yet effective for this interim period116 - The Company's directors believe that the adoption of these standards is unlikely to have a significant financial impact on these interim condensed consolidated financial statements116 3. Operating Segment Information Management reviews the operating results of the business as a single operating segment to make decisions about resource allocation, thus the Company's chief operating decision-maker considers there to be only one segment for strategic decision-making. - Management reviews the operating results of the business as a single operating segment to make decisions on resource allocation117 - All of the Group's revenue and non-current assets are derived from China117 4. Revenue The Group's revenue primarily derives from property management services, value-added services, pre-delivery and consulting services, and property engineering services. For the six months ended June 30, 2025, total revenue was RMB 450.0 million. Revenue by Service Type | Service Type | 2025 H1 (thousand RMB) | 2024 H1 (thousand RMB) | | :--- | :--- | :--- | | Property Management Services | 315,295 | 278,610 | | Value-Added Services | 102,660 | 83,051 | | Pre-delivery and Consulting Services | 2,909 | 6,991 | | Property Engineering Services | 29,152 | 36,757 | | Total | 450,016 | 405,409 | - For the six months ended June 30, 2025, revenue from entities controlled by the ultimate controlling company was RMB 17,258,000, accounting for 4% of the Group's total revenue119 Recognized Revenue Related to Contract Liabilities Carried Forward | Indicator | 2025 H1 (thousand RMB) | 2024 H1 (thousand RMB) | | :--- | :--- | :--- | | Revenue recognized included in the balance of contract liabilities at the beginning of the reporting period | 144,489 | 106,502 | 5. Other Income, Gains and Losses, Net For the six months ended June 30, 2025, other income, gains and losses, net, was a negative RMB 1.039 million, a significant decrease from RMB 32.753 million in the prior period, primarily due to lower interest income and the absence of recovery of interest income from pledged matters. Other Income, Gains and Losses, Net Breakdown | Item | 2025 H1 (thousand RMB) | 2024 H1 (thousand RMB) | | :--- | :--- | :--- | | Recovery of interest income loss from pledged matters | – | 24,438 | | Net loss from partial settlement of other receivables related to pledged matters | – | (6,489) | | Bank interest income | 525 | 678 | | Government grants | 55 | 210 | | Exchange differences, net | (1,180) | (178) | | Write-off of bad debts from related party payments | (1,362) | – | | Others | 923 | 14,094 | | Total | (1,039) | 32,753 | - The decrease was primarily attributable to lower interest income in the current period, and the recovery of interest income loss from pledged matters in the corresponding period of 2024122 6. Profit Before Income Tax For the six months ended June 30, 2025, profit before income tax was RMB 74.881 million. Key costs included cost of services provided of RMB 294.573 million and employee benefit expenses of RMB 120.496 million. Profit Before Income Tax Components | Item | 2025 H1 (thousand RMB) | 2024 H1 (thousand RMB) | | :--- | :--- | :--- | | Cost of services provided | 294,573 | 273,182 | | Employee benefit expenses | 120,496 | 117,131 | | Total depreciation and amortization | 12,837 | 6,674 | | Of which: Depreciation of right-of-use assets | 7,821 | 2,156 | | Impairment provisions for financial assets and contract assets (excluding related parties) | 31,555 | 65,373 | | Impairment reversals for financial assets and contract assets (related parties), net | (19,125) | (30,414) | 7. Income Tax Expense For the six months ended June 30, 2025, total tax expense for the period was RMB 13.954 million, a decrease from the prior period. China's corporate income tax rate is 25%, with some Chinese entities enjoying reduced rates as small low-profit enterprises. Income Tax Expense Breakdown | Item | 2025 H1 (thousand RMB) | 2024 H1 (thousand RMB) | | :--- | :--- | :--- | | Current income tax – China | 23,165 | 31,408 | | Deferred income tax – China | (9,211) | (9,925) | | Total tax expense for the period | 13,954 | 21,483 | - The Company is exempt from Cayman Islands income tax under the Cayman Islands Companies Act126 - The Group's Chinese entities are subject to Corporate Income Tax at a rate of 25% on their assessable income, with small low-profit enterprises enjoying reduced tax rates129 8. Dividends The Board recommends an interim dividend of 2.77 HK cents per ordinary share for the six months ended June 30, 2025, totaling approximately HKD 16.427 million (approximately RMB 14.990 million). - On August 28, 2025, the Board recommended an interim dividend of 2.77 HK cents per ordinary share for the six months ended June 30, 2025, totaling approximately HKD 16,427,000 (equivalent to RMB 14,990,000)130 - On June 8, 2025, the Board recommended a final dividend of 2.73 HK cents per ordinary share for the year ended December 31, 2024, totaling approximately HKD 16,190,000 (equivalent to RMB 14,764,000), which was paid in July 2025130 9. Earnings Per Share Attributable to Equity Holders of the Company For the six months ended June 30, 2025, basic earnings per share were RMB 10.29 cents, an increase from RMB 8.96 cents in the prior period. Earnings Per Share | Indicator | 2025 H1 (RMB cents) | 2024 H1 (RMB cents) | | :--- | :--- | :--- | | Basic Earnings Per Share | 10.29 | 8.96 | | Diluted Earnings Per Share | 10.29 | 8.96 | - Basic earnings per share are calculated by dividing the profit for the period attributable to equity holders of the Company by the weighted average number of ordinary shares in issue during the period (577,268,400 shares)131 - There was no difference between basic and diluted earnings per share as there were no potentially dilutive ordinary shares outstanding during the period131 10. Leases The Group has lease contracts for its offices in China and Hong Kong, with lease terms ranging from 2 to 15 years. As of June 30, 2025, the carrying value of right-of-use assets was RMB 31.225 million, and lease liabilities were RMB 34.841 million. - The Group has lease contracts for its offices in China and Hong Kong used for its operations, with lease terms ranging from 2 to 15 years132 Carrying Value of Right-of-Use Assets | Indicator | June 30, 2025 (thousand RMB) | Dec 31, 2024 (thousand RMB) | | :--- | :--- | :--- | | Carrying Value of Right-of-Use Assets | 31,225 | 38,692 | Carrying Value of Lease Liabilities | Indicator | June 30, 2025 (thousand RMB) | Dec 31, 2024 (thousand RMB) | | :--- | :--- | :--- | | Carrying Value of Lease Liabilities | 34,841 | 47,050 | | Of which: Current portion | 13,519 | 14,269 | | Of which: Non-current portion | 21,322 | 32,781 | Lease Amounts Recognized in Profit or Loss | Item | 2025 H1 (thousand RMB) | 2024 H1 (thousand RMB) | | :--- | :--- | :--- | | Interest on lease liabilities | 858 | 189 | | Depreciation expense of right-of-use assets | 7,821 | 2,156 | | Expenses relating to short-term leases | 201 | 8,071 | | Total recognized in profit or loss | 8,880 | 10,416 | 11. Intangible Assets As of June 30, 2025, the net carrying value of intangible assets was RMB 36.270 million, primarily comprising property operating rights and computer software. Net Carrying Value of Intangible Assets | Item | June 30, 2025 (thousand RMB) | Dec 31, 2024 (thousand RMB) | | :--- | :--- | :--- | | Operating Rights – Premises | 34,125 | 36,075 | | Computer Software | 2,145 | 2,854 | | Total | 36,270 | 38,929 | - Intangible assets represent property operating rights arising from the acquisition of a subsidiary due to a partial settlement of an arbitration award on April 1, 2024 from the ultimate controlling company138 - These property operating rights have a finite useful life and are amortized on a straight-line basis over 10 years138 12. Investment Properties As of June 30, 2025, the carrying value of investment properties was RMB 70.052 million, an increase from RMB 49.574 million as of December 31, 2024. Carrying Value of Investment Properties | Item | June 30, 2025 (thousand RMB) | Dec 31, 2024 (thousand RMB) | | :--- | :--- | :--- | | Leased Parking Spaces – Right-of-Use Assets | 9,581 | 9,827 | | Leased Clubhouses – Right-of-Use Assets | 39,062 | 39,747 | | Duplex Villas, Residential and Commercial Properties | 21,409 | – | | Total | 70,052 | 49,574 | - On May 19, 2025, the Group entered into debt offset agreements with subsidiaries and associates of the ultimate controlling company, acquiring certain duplex villas, residential and commercial properties, parking spaces, and storage rooms142 - The Group owns 547 leased parking spaces (20-year lease term) and six leased clubhouses (30-year lease term)143 13. Trade and Bills Receivables As of June 30, 2025, total trade and bills receivables amounted to RMB 361.790 million, an 11.4% increase from December 31, 2024. Trade and Bills Receivables Breakdown | Item | June 30, 2025 (thousand RMB) | Dec 31, 2024 (thousand RMB) | | :--- | :--- | :--- | | Trade receivables – Related parties | 214,149 | 235,973 | | Trade receivables – Third parties | 353,883 | 267,790 | | Less: Impairment provision for trade receivables | (207,417) | (180,497) | | Bills receivables | 1,175 | 1,560 | | Total | 361,790 | 324,826 | - Trade receivables for property management services are collected monthly or quarterly, typically due upon issuance of payment notices, with no credit period144 Aging Analysis of Trade Receivables (net of impairment) | Aging | June 30, 2025 (thousand RMB) | Dec 31, 2024 (thousand RMB) | | :--- | :--- | :--- | | Within 1 year | 152,279 | 151,493 | | 1 to 2 years | 78,749 | 90,305 | | 2 to 3 years | 59,726 | 51,196 | | 3 to 4 years | 39,615 | 31,832 | | 4 to 5 years | 31,421 | – | | Total | 361,790 | 324,826 | 14. Prepayments to a Related Party, Payments to Related Parties, Deposits, Prepayments and Other Receivables As of June 30, 2025, non-current prepayments were RMB 47.336 million, and current payments (related parties) were RMB 97.634 million. Other receivables totaled RMB 382.038 million, including RMB 302.714 million related to pledged matters. Prepayments and Other Receivables Breakdown | Item | June 30, 2025 (thousand RMB) | Dec 31, 2024 (thousand RMB) | | :--- | :--- | :--- | | Non-current prepayments – Related parties (net of impairment) | 47,336 | 47,336 | | Current payments – Related parties (net of impairment) | 97,634 | 99,297 | | Current prepayments | 5,166 | 26,343 | | Deposits (net of impairment) | 23,054 | 18,037 | | Other receivables – Related parties | 60,179 | 66,137 | | Other receivables – Related parties – Related to pledged matters | 302,714 | 302,714 | | Other receivables – Third parties | 19,145 | 7,320 | | Less: Impairment provision for other receivables | (211,693) | (205,250) | | Total (current portion) | 239,913 | 249,630 | - Non-current prepayments represent prepayments for the purchase of 342 units in Xinyuan Mingcheng, a property development project in Henan Province, with an impairment provision of RMB 41,737,000148149 - Current payments primarily represent amounts paid to certain subsidiaries of the ultimate controlling company for exclusive sales rights of parking spaces, with a provision of RMB 93,939,000149152 - Receivables related to pledged matters primarily represent unauthorized pledged bank deposits previously obtained by the borrower for bank borrowings, with a provision of approximately RMB 153,884,000155156 15. Trade Payables As of June 30, 2025, total trade payables were RMB 121.578 million, a 16.1% decrease from December 31, 2024. Trade payables are interest-free, with a general credit period of 30 to 90 days. Trade Payables Breakdown | Item | June 30, 2025 (thousand RMB) | Dec 31, 2024 (thousand RMB) | | :--- | :--- | :--- | | Trade payables – Related parties | 83,394 | 30,066 | | Trade payables – Third parties | 38,184 | 114,897 | | Total | 121,578 | 144,963 | - Trade payables are interest-free, and the general credit period is 30 to 90 days157 Aging Analysis of Trade Payables | Aging | June 30, 2025 (thousand RMB) | Dec 31, 2024 (thousand RMB) | | :--- | :--- | :--- | | Within 1 year | 55,286 | 73,593 | | 1 to 2 years | 28,342 | 58,553 | | 2 to 3 years | 26,956 | 4,269 | | Over 3 years | 10,994 | 8,548 | | Total | 121,578 | 144,963 | 16. Other Payables and Accrued Expenses and Contract Liabilities As of June 30, 2025, total other payables and accrued expenses were RMB 232.880 million, and total contract liabilities were RMB 131.766 million. Other Payables and Accrued Expenses and Contract Liabilities Breakdown | Item | June 30, 2025 (thousand RMB) | Dec 31, 2024 (thousand RMB) | | :--- | :--- | :--- | | Other payables and accrued expenses – Related parties | 61,156 | 42,294 | | Other payables and accrued expenses – Deposits and temporary receipts from third parties | 54,489 | 131,984 | | Other payables and accrued expenses – Others | 58,937 | 27,746 | | Dividends payable | 14,804 | 40 | | Accrued staff costs | 29,351 | 48,146 | | Other taxes payable | 14,143 | 13,969 | | Contract liabilities – Related parties | 27 | 54 | | Contract liabilities – Third parties | 131,739 | 144,435 | | Total (Other Payables and Accrued Expenses) | 232,880 | 264,179 | | Total (Contract Liabilities) | 131,766 | 144,489 | 17. Related Party Transactions The Group engages in various related party transactions with its ultimate controlling company and its subsidiaries, including revenue from property management services, value-added services, pre-delivery and consulting services, property engineering services, and costs for commercial asset entrusted operation services. - As of June 30, 2025, the ultimate controlling company held approximately 43.07% of the Company's equity160 Significant Transactions with Related Parties | Transaction Type | 2025 H1 (thousand RMB) | 2024 H1 (thousand RMB) | | :--- | :--- | :--- | | Property management service fee income | 1,076 | 2,952 | | Value-added service fee income | 2,360 | 2,445 | | Value-added service fees (cinema leasing services) | 1,114 | – | | Cost of services (commercial asset entrusted operation services) | 7,946 | – | | Recovery of interest income loss from pledged matters | – | 24,438 | | Pre-delivery and consulting service fee income | 1,152 | 4,819 | | Property engineering service income | 11,556 | 18,667 | - The aforementioned related party transactions also constitute continuing connected transactions as defined in Chapter 14A of the Listing Rules164 Key Management Personnel Compensation | Item | 2025 H1 (thousand RMB) | 2024 H1 (thousand RMB) | | :--- | :--- | :--- | | Salaries, allowances and benefits | 2,998 | 4,028 | | Pension scheme contributions | 146 | 163 | | Total | 3,144 | 4,191 | Balances with Related Parties (net of impairment) | Item | June 30, 2025 (thousand RMB) | Dec 31, 2024 (thousand RMB) | | :--- | :--- | :--- | | Trade receivables from related parties | 124,738 | 133,388 | | Contract assets from related parties | 32,904 | 45,199 | | Other receivables from related parties (incl. payments to related parties and pledged matters related) | 297,062 | 300,977 | | Prepayments to related parties (non-current) | 47,336 | 47,336 | | Prepayments to related parties (current) | 1,992 | 12,617 | | Trade payables to related parties | 83,394 | 30,066 | | Other payables to related parties | 61,156 | 42,294 | | Contract liabilities from related parties | 27 | 54 | [18. Fair Value and Fair Value Hierarchy o
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